Meme coins like Shiba Inu have drawn much criticism from the start. Looking back, not even cryptocurrencies were immune to the backlash. However, the popularity of cryptocurrencies is beyond explanation. Even meme coin, such as Shiba Inu is supported by top businessmen worldwide. Tech giant Elon Musk has been rooting for the meme cryptocurrency, Dogecoin. As a result, Dogecoin is among the top cryptocurrencies in the world. The increasing popularity of Dogecoin gave other meme coins the exposure they needed for better trading. Shiba Inu is among the few meme coins that have largely benefited from the same. The increasing price and market supply of Shiba Inu gained popularity in the crypto staking community. Through cryptocurrency staking, holding your cryptocurrency for a predetermined time will reward you and support the blockchain’s operation.
This article will demonstrate how to stake a Shiba Inu and generate interest on your cryptocurrency holding.
What is Shiba Inu?
Shiba Inu is a meme coin based on the Ethereum network. The coin’s mascot is a hunting dog of a Japanese breed. Since the coin’s launch in 2020, it has experienced significant traction. Shiba Inu has now grown to include a decentralized exchange called ShibaSwap. The exchange was launched in 2023, supporting DeFi staking and an exceptional NFT marketplace.
Despite being 2 years old, the coin has assembled a solid and loyal community. Today, Shiba Inu is among the top 20 cryptocurrencies in the world. A total of 1 quadrillion tokens were initially available for Shiba Inu.
To ensure liquidity, Ryoshi, the man behind Shiba Inu, has locked half of the total supply in Uniswap. Additionally, he has sent Vitalik Buterin, a co-founder of Ethereum, the other half of the entire supply of Uniswap. Following that, 10% of the tokens were given to charity by V. Buterin. Vitalik’s remaining 90% of the share was burned. Approximately 549 trillion Shiba Inu tokens are currently in use.
The SHIB utilizes smart contracts and are ERC-20 tokens. Two additional ERC-20 tokens, LEASH and BONE, are part of the Shiba Inu ecosystem. The Shib army uses the governance token BONE to cast votes and participate in governance on their DAO. LEASH is a rebase token that reaches its full potential despite having an association with Dogecoin’s price.
What is Shiba Inu Staking?
Before digging into staking Shiba Inu, let’s first understand crypto staking. Various exchanges offer varied interests based on the staking period and amount. The staking on decentralized exchanges (DEXs) is accessible with crypto wallets. On the other hand, centralized crypto exchanges have jurisdiction restrictions for staking crypto. Payouts from DEXs and CEXs can be monthly, weekly, or yearly.
Staking is essential to the proof of stake (POS)protocols because it supports node validators and gives exchanges liquidity. Ethereum has recently shifted from proof of work to proof of stake.
With over 3 million Twitter followers, Shiba Swap is the legit Shiba Decentralized Exchange (DEX).
Staking Shiba Inu on ShibaSwap DEX
Shiba swap staking allows yielding interest on Shiba Inu tokens. The Shiba Inu Staking rewards on Shibaswap are proportionate to the pool’s share. They are distributed every week. Only 33% of stake rewards are redeemable, with the remaining 67% having a 67-day lock period.
Users must connect their cryptocurrency wallets containing SHIB tokens to Shiba Swap, which accepts wallets from services like Metamask and Coinbase, to stake SHIB. Then, users can either purchase the tokens on Shiba Swap by exchanging them for ETH or other accepted cryptos, or they can purchase SHIB from a centralized exchange and transfer it to their wallets.
It is essential to have enough ETH or cryptocurrency for swapping in the wallet to pay transaction gas costs. Once enough SHIB is available, the tokens on the platform use the Bury option.
Benefits of Shiba Inu staking
Shiba Inu staking tokens entail keeping a specific quantity of digital currency in a wallet for a specified time. Stakeholders stand to gain a variety of advantages, such as:
- Passive income: The holders looking for extra income have this brilliant opportunity to stake Shiba Inu and earn passively. Involvement in network decisions: Stakers have the stay in the governance of Shiba Inu. They can vote on proposals increasing stakers involvement in the coin.
- Spiked token value: Staking helps the network enormously in securing the network. As a result, the demand of SHIB increases and so does the value.
- Special features: Crypto stakers the access to exclusive benefits and features on the Shiba Inu network.
Risks associated with staking Shiba Inu
Staking Shiba Inu carries some risks. Here are they:
- Market volatility: With cryptocurrencies, the volatile market is a major issue. Some blamed its newness, while others say it’s just another characteristic of the cryptocurrency market. Due to market volatility, investing in cryptocurrencies may result in losses for investors.
- Security risks: staking wallets that might suffer other security flaws. To prevent losing their tokens, holders must protect their wallets.
- Smart contract risks: The DEX platform’s underlying smart contract may experience technical or coding problems, which could cause stakers to lose their staked tokens.
It’s crucial to remember that staking any cryptocurrency entails accepting risk without guaranteeing profit. It is better to conduct extensive research, comprehend the risks, and, if necessary, seek advice from a financial advisor before staking.